Crypto strategist Benjamin Cowen says that Bitcoin (BTC) will experience brief moments of bullishness even as the overall trend remains bearish.
Cowen tells his 787,000 YouTube subscribers that after the death cross formed earlier this week, the flagship crypto asset could still witness “occasional rallies.”
A death cross occurs when the 50-day moving average crosses below the 200-day moving average.
The widely followed crypto analyst says that Bitcoin’s bounce earlier this week of about 7% from a three-month low of around $24,917 to $26,575 is one such rally.
“The sort of the typical death cross rally has materialized and from here I guess we’ll just see what sort of what sort of move it has in store. And it could be any number of things…”
Bitcoin is trading at $26,134 at time of writing.
Cowen says that there are three scenarios that could play out after the “death cross rally” and this includes Bitcoin continuing to go up by up to 12% from the current level.
“You could make the case that it [Bitcoin] sort of just fades around these levels [around $26,700] and then goes back down [to below $24,500].
Perhaps it goes up to that 50-day moving average near where this move was back over here [above $27,500]… that would be closer to $27,600, $27,700, before moving down.
Or, this would sort of be the more optimistic scenario – go all the way back up to just below this break breakdown point [around $29,200] and then fade back down.
So all three of those scenarios, I think, are possibilities.”
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